WEEKLY MACRO NOTE - 0DTE

Zero days to expiration, Weekly Wrap Up, Adani Group, Sentiment, FOMC & more

January 29, 2023

Read Time: 8 mins

TABLE OF CONTENTS

  • ZERO DAYS TO EXPIRATION

  • WEEKLY WRAP UP

  • SENTIMENT

  • ECONOMIC CALENDAR & FOMC

  • EARNINGS CALENDAR

  • THE WEEKS AHEAD

ZERO DAYS TO EXPIRATION

One month into the year and the markets are on a run, or at least some of them are. If you thought the current rally was broad based, you would be mistaken.

It is worth looking at the factor exposures performing the best YTD, namely low-quality factors such as leverage and high short interest.

As I pointed out last week, the trend where the most down beaten sectors and exposure of 2022 are rallying continues.

Tesla for example, which was down -65% in 2022, is already up 44% YTD, +33% in the last week alone. But don’t get too excited, it is still down -56% from its all-time high.

What is driving this? A combination of 0DTE options volume and short covering.

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